If a Bear Market Is Coming, This Is the Single Best Investing Decision You Can Make

Yahoo Finance ·

In 2026, it can feel like each time the market takes one step forward, it snaps back just as quickly, unable to find the footing needed for a prolonged rally. The worry then becomes that if stocks can't rebound from a broad sell-off, a bear market may loom, which would be the S&P 500 ( ^GSPC -0.87% ) falling by 20% or more from its recent highs. If that's the case and we enter a bear market, history suggests there's one move to make that could be the single best investing decision. When stocks are sliding off a cliff, it can feel like making some kind of move is better than doing nothing. That can cause many investors to panic-sell, which history suggests is ultimately one of the worst decisions an investor can make. For example, according to Hartford Funds, from 1996 to 2025, surprisingly, 48% of the best days for the S&P 500 occurred during bear markets. That's a significantly higher percentage than 28% of the best days for the S&P 500 occurring during the first two months of a bull market, and 24% of the best days occurring during the rest of the bull market.

DYAX Investor Sentiment

Bullish (Long) 43% · Bearish (Short) 57%

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